Demand ,types of demand ,schedule demand, law of demand, extension and contraction, increase and increase demand

Demand

quantity of a given commodities or service which consumer would buy  in one market in a given period of time at various prices of related goods.

Three main characteristic of demand in economics

Willingness and ability to pay 

demand is always at price

 demand is always per unit of time.

Kinds of demand 

there are three types of demand

Price demand

 income demand

 cross demand

Price demand

various quantities of a commodity or service that a consumer would purchase at a given time in a market at various hypothetical prices

 example income, test and price of interrelated goods remain constant.

Income demand 

quantities of a good or service which would be purchased by a consumer at various level of income .example of goods or service as well as price of interrelated goods, test and desire of a consumer do not change.

Cross demand

 quantities of a good or service which would be  purchased with reference to change is price not of the good but of the inter related goods.

Law of demand

A rise in price of a commodity orservice is followed by a reduction in demand and fall in price is followed by an increase in demand

 demand remain constant 

 demand vary inversely with price.

Extension and contraction of demand

Extension of demand means buying more quantity of commodity at lower price .

 contraction of demand indicate buying less at higher price.

Determinants of demand

The determinants of demand

price of the good 

price of related goods 

income

 individual taste and preference .

expectation about future price and income

Exception of law of demand

giffen goods

 commodity which are regarded as status symbol expectation of change in the price of the goods in future.